Lululemon is showing signs of a turnaround despite the chip on its shoulder.

The purveyor of pricey yoga wear reported better-than-expected sales in the first quarter as the retailer fends off criticism from founder Chip Wilson that it is falling behind in the market it pioneered.

The Canadian company also bumped up its full-year revenue forecast, sending its shares up nearly 2 percent on Wednesday morning.

Analysts said the results showed that the retailer’s new merchandise, such as an expanded line of women’s tops, is resonating with customers.

Sales jumped 17 percent to $495.5 million in the quarter ended May 1. Analysts had forecast $487.6 million.

Still, profit fell short of estimates due to higher costs. Profit excluding some items was 30 cents a share, below the consensus of 31 cents.

In an open letter to investors last week, Wilson slammed the chain for losing ground to competitors like Nike and Under Armour and called for annual election to shake up its board.

The Canadian billionaire is no longer involved with the company but remains its biggest investor.